5 Cheap Chinese Stocks To Buy Now

4. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 25

Share Price as of October 25: $10.51

NIO Inc. (NYSE:NIO) is a Shanghai-based manufacturer of smart electric vehicles in China. Priced at under $11 as of October 25, NIO Inc. (NYSE:NIO) is one of the best affordable Chinese stocks to buy now. NIO Inc. (NYSE:NIO) is entering the European market by selling its vehicles in Germany, Netherlands, Denmark, and Sweden following the electric vehicle maker’s entry into the Norwegian market last year. 

On October 6, Mizuho analyst Vijay Rakesh maintained a Buy rating on NIO Inc. (NYSE:NIO) but trimmed the price target on the stock to $40 from $42. The analyst believes the September quarter for electric vehicle makers was largely as expected, given supply chain and logistics “remain a challenge.” However, he sees resilient demand with a multi-year electrification transition on its way, and China is the market leader in this regard. China’s EV penetration at the end of Q3 2022 could reach 25% to 30% of total auto sales, the analyst told investors.

According to Insider Monkey’s Q2 data, NIO Inc. (NYSE:NIO) was part of 25 hedge fund portfolios, compared to 26 in the preceding quarter. Jim Simons’ Renaissance Technologies held the largest position in the company, with 17.7 million shares valued at $386 million. 

Here is what Horos Asset Management has to say about NIO Inc. (NYSE:NIO) in its Q1 2022 investor letter:

“At the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information. While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. Other entities, such as the electric vehicle manufacturer Nio, have just started trading on this stock market.”